What are the Top 10 US States for Inbound Moves?

Inbound moves from one US state to another often reflect broad social and economic trends. Mark J. Perry recently published an article through the American Enterprise Institute on this topic. A review of the data and specific points helps tell the story behind the numbers. The state of Arizona is ranked as the #1 state for inbound moves.

This ranking is highly touted by the state as proof of its successful approach to balanced economic growth. Arizona Governor Doug Ducey cites the state’s growing economy, daily influx of hundreds of new residents, and a fiscally conservative state budget. Notably, the state’s budget has risen from a $1 billion deficit in 2015 to a $1 billion surplus in 2019, with a record-high balance in the state’s “Rainy Day Fund” of over $1.014 billion.

Top 10 States for Inbound Moves

The top 10 states for inbound moves, in order, are:

  1. Arizona
  2. Idaho
  3. Nevada
  4. Maine
  5. North Carolina
  6. South Carolina
  7. Vermont
  8. Florida
  9. Montana
  10. Texas

The top 10 states for outbound moves—meaning more residents chose to leave these states, in order, are:

  1. New York
  2. Illinois
  3. New Jersey
  4. California
  5. Connecticut
  6. Hawaii
  7. Massachusetts
  8. New Mexico
  9. Alaska
  10. Louisiana

Factors Driving Inbound Moves

Of the states experiencing the highest amount of inbound moves, significant factors drive these moves. These factors include local costs, taxes, economic growth, and employment measures.

Local Costs

Home prices for the top 10 states that experience the highest number of inbound moves are significantly lower than home prices of the top 10 outbound states. For the top 10 inbound group, average home prices are $231,250. This amount is $99,900 lower than the average for the top 10 outbound group of $331,150.

Average electricity costs are also significantly lower in the top 10 states for inbound moves. These states have an average electricity cost of 10.71 cents per kilowatt hour. By comparison, the average cost for electricity of the top 10 outbound states is 15.99 cents per kilowatt hour. This represents a premium of over 49% higher than the costs for the top 10 inbound moves states.

Taxes

The average top state corporate tax rate for the top 10 states for inbound moves is 5%. This compares to the rate of 8% for the top 10 states for outbound moves. Corporate taxes are often cited as significantly hampering business and economic growth. Many companies have made announcements about relocating from one state with comparatively high taxes to another state with comparatively low taxes.

Employment

Growth in jobs and employment is a key indicator of a state’s economic health. The United States Department of Labor’s Bureau of Labor Statistics considers job growth of 100,000 or more to have a very positive and long-lasting impact on economic growth. The Bureau’s Current Labor Statistics Highlights show that nonfarm payroll employment increased by 128,000 in October 2019. The Bureau also revised the August and September figures significantly upward, again reflecting more favorable economic performance and health. For October 2019, the state of Arizona gained 31,600 nonfarm jobs.

What Should Employers do About Inbound Moves?

Employers in the top 10 states for inbound moves should expect a rise in demand for workers as more residents move into their state. Inbound moves generate a significant economic impact on a location. As a result of inbound moves, new businesses and residents require products and services sourced from the local area, such as:

  • New home construction
  • Insurance policies
  • Educational institutions
  • Retail sales
  • Mortgage services
  • Infrastructure
  • Entertainment establishments
  • Cultural institutions

Companies should review their hiring needs, corporate objectives, and relocation programs. Employers may need to consider offering relocation benefits to attract top talent with specific skills and training. They should also look into pre-hire assessment tools to identify the most qualified candidates for their job openings.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to labor and economic market forces such as inbound moves to growing states. Our team can help your company by using industry best practices to design your relocation program.

GMS was the first relocation company to register as a .com, created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s interest in learning more about how to attract employees in the top 10 states growing due to inbound moves, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Choosing a Relocation Company Corporate relocation tips Domestic Relocation Tips Global Relocation Tips Household Goods Relocation Policy Review Relocation Programs

Affinity Programs and Relocation: How Your Company Can Benefit

Many companies can benefit by adding affinity programs to their relocation policy. Relocation offers ample opportunities for transferees and new hires to use services. As a result, a robust relocation policy with well-structured affinity programs may provide a revenue stream to help offset administrative costs. Also transferees and new hires may benefit from special programs and discounts offered through these programs.

What are Affinity Programs?

Affinity programs are a structured partnership between businesses that promotes use of a service or purchase of an item. The Association of Chamber of Commerce Executives notes that these programs must provide value and specific price advantages for members in order to be successful.

A typical affinity program may follow the following steps:

  1. Employer enters into an agreement with a business partner
  2. Employer then offers the services to their employees
  3. Employees gain a benefit from using the services (such as discounts on products and services)
  4. Profits attributed to the employee’s use of the service are shared between the employer and the business partner

Employees gain value when they receive exclusive discounts and services in return for their participation. They also gain expert, hands-on guidance of experienced support staff from the business partner. Staff members are ready to help guide affinity program recipients through the process of selecting, ordering, and tracking the various services they desire.

Employers gain from affinity programs in several areas:

  • Revenue stream from profit share
  • Increased employee satisfaction
  • Enhanced goodwill through offering valued services
  • Association with a trusted business partner
  • Seen as an employer of choice among job seekers

What are Typical Affinity Programs in Relocation?

Typical affinity programs in relocation might include profit sharing based on transferee and new hire use of services offered by a Relocation Management Company (RMC). Services that may be eligible might include household goods moves, home selling/buying, mortgages, housing, or travel. These programs can be structured in many ways to meet employer’s needs as well as provide clear and defined value for employees.

Example: Traditional Temporary Housing

For example, transferees may be offered the option of using traditional temporary housing while they search for a home in their new location. If the transferee chooses to use this option, the employer will gain in the form of a profit share.

Importantly, the employer will also gain from having the transferee use housing that meets specific requirements for maintenance, cleanliness, amenities, and security. Transferees are more likely to have a positive experience when they use traditional temporary housing, as opposed to other housing options. This in turn will increase employee satisfaction with their relocation experience.

Many other housing options might initially seem attractive and offer a lower cost, but they may not meet cleanliness standards, and may carry hidden costs and unexpected issues for the transferee.

What Should Employers do About Affinity Programs?

Employers interested in learning more about affinity programs in relocation should work with a Relocation Management Company that has knowledge and expertise with these programs. An experienced RMC can help employers design their relocation policy to provide value for employees while returning many benefits to employers.

GMS offers clients its exclusive MyRelocation® Affinity Program. Through this program, eligible clients are able to gain many valuable benefits for their companies and their employees, where available.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients develop value-added benefits as part of their relocation policies. Our team can help your company determine how to define affinity programs that provide positive returns and valuable benefits for employees.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to learn more about how to define affinity programs in your company’s relocation policy, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force Talent Mobility

North American Van Lines Survey Shows Why Americans Stay in Their Hometown

North American Van Lines’ recent survey shows why Americans stay in their hometown. Over 2,000 respondents were asked if they moved in relation to their hometown. Of those that have moved but remained in the same city or area, several reasons impacted their decision including:

  • Ability to stay close to family members
  • Cost of living is lower than other locations
  • Knowledge of and preference for local area
  • Environment, weather, and climate are more favorable
  • Near to place of work

Primary Reason Americans Stay

Those who responded to the North American Van Lines survey that stay in or close to their hometown represent:

  • Men: 68%
  • Women: 75%

The primary reason that Americans stay in their hometown is to remain close to their family members. This reason is remarkably consistent across genders.  48% of men and 51% of women reported staying close to family members as their primary reason for doing so.

Results Show the Importance of Family Support in Relocation

For the survey respondents who have moved out of state away from their hometown, 70% reported work as the primary reason for their move. Since Americans stay in their hometown to remain close to family, those that choose to relocate for their job often inquire about support for their partner, spouse, and family members. Important points for family members, partners, and spouses to consider in a relocation may include:

  • Care for elderly parents and relatives
  • Child care arrangements
  • Community resources and networks
  • Educational opportunities
  • Healthcare options and resources
  • Home finding resources
  • Job market and career assistance for spouses and partners (very important consideration as to why Americans stay in their hometown)
  • Transportation options including driver’s licenses
  • Utility setup and connections

Case Study Shows Importance of Spouse and Partner Career Support

GMS’ Case Study on Educational Institution Relocation Programs shows the importance of local job and career assistance for partners and spouses. Our client learned that new hires were departing within a year due to the lack of local job support for partners and spouses. By redesigning their relocation policy and adding career services for partners and spouses, our client was able to significantly increase their new hire retention rates.

What Should Employers do About the Primary Reason Americans Stay in their Hometown?

Employers should review their relocation program to ensure it follows industry-leading best practices with regard to family matters as well as partner and spouse career support. Companies should work with a qualified and experienced RMC that can help them design a relocation policy that promotes successful relocations. Partner and spouse career considerations should be included in the transferee’s relocation experience. Family support is also critical to reduce any disruption from the move. Having full family support provides peace of mind for the transferee, their partner or spouse, and their family members.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation policies and programs that address the reasons why Americans stay in their hometown. Our team can help your company design a robust relocation program. As a result, the program will provide the best relocation experience for your company’s transferees and their family members.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s relocation program and the need to address the reasons why Americans stay in their hometown, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Talent Mobility United States Economy

Domestic Short Term Assignments Best Practices: White Paper

GMS has recently published a new white paper listing domestic short term assignments best practices and tax considerations. Companies are increasingly using these assignments for special projects, corporate initiatives, and business opportunities. By leveraging the willingness of current employees to accept domestic short term assignments, companies can respond to changing priorities quickly and efficiently.

What is a Domestic Short Term Assignment?

A domestic short term assignment is a temporary assignment or job that lasts for one year or less, according to IRS definitions. Often the company’s relocation policy is focused on benefits and programs for employees and family members moving to a new location. Transferees that accept domestic short term assignments will need a different range of benefits and support, since they will return to their home after the assignment is complete. They may need assistance with travel, temporary housing options, or transportation solutions while at the new location.

As a result, relocation programs should address the specific needs of transferees who take short term assignments. By following domestic short term assignments best practices, companies will accrue the greatest benefits, while transferees will receive the best experience.

Domestic Short Term Assignments Best Practices: 3 Examples

A review of domestic short term assignments best practices shows it is important to examine the transferee’s assignment experience in detail. Such a review will help the company manage costs and ensure the best experience for the transferee.

For example, three specific topics highlight the importance of domestic short term assignments best practices to address points that relocation policies usually do not address:

1. Return Trips During Assignments

Domestic short term assignments best practices for return trips is to provide two trips home for every 30 days of assignment. Relocation policies usually do not include a series of return trips home, since the transferee is relocating to the new location.

2. Domestic Short Term Assignments Best Practices for Local Transportation

Domestic short term assignments best practices for local transportation is to provide one of the following two options, whichever is lowest cost:

  • Short term leasing option
  • Shipment of transferee’s vehicle for duration of assignment

Note: longer term assignments should provide local rental vehicle

3. Property Management at Origin Location

Domestic short term assignments best practices for property management at origin is to offer this option to assignments greater than 6 months. Best practice includes making additional copies of keys and fobs for the property management team so you always have spare keys and fobs on hand if required. Options typically include the lowest cost of either:

  • Property management reimbursement or direct bill
  • Stipend or housing differential

What Does This Mean?

Companies should follow domestic short term assignments best practices. This will ensure they can obtain the greatest benefit from this approach while controlling costs. This will help the company be able to respond quickly to changing business priorities.

How Can Employers Learn About Domestic Short Term Assignments Best Practices?

Employers should work with a qualified and experienced Relocation Management Company (RMC) to learn about domestic short term assignments best practices. Companies should review their relocation policy to ensure it follows industry best practice for relocation benefits provided to employees who take domestic short term assignments.

GMS tailors each client’s program based on specific budgets, needs, and compliance. As a result, clients can offer an industry-leading relocation program designed to fully meet the needs of these employees. This helps ensure successful assignments and increases employee satisfaction.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to incorporate domestic short term assignments best practices into their relocation programs. Our team can help your company design a relocation policy that provides the best experience for employees during their temporary assignments.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss how your company can learn more about domestic short term assignments best practices, or give us a call at 800.617.1904 or 480.922.0700 today.

View the White Paper

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force United States Economy

Federal Agency Relocation to Move Jobs Outside the Beltway

A new Bill sponsored by two United States Senators will result in federal agency relocation outside of the Washington, D.C. beltway area. The Bill calls for enactment of the “Helping Infrastructure Restore the Economy (HIRE) Act.” One goal of the HIRE Act is to help certain areas of the country build necessary infrastructure. As a result, this will support future economic growth. Another goal of the HIRE Act is to provide access to good jobs for a greater number of Americans throughout the nation. Several states will see an influx of high paying jobs to economically distressed areas.

The HIRE Act will move policymakers directly into communities impacted by their policies. This should help them see how policies their agency creates affect local areas outside of the beltway. There may also be long term savings for the agencies in a number of other areas including labor, maintenance, and energy costs.

Federal Agency Relocation: The Bill and its Sponsors

Bill:

Helping Infrastructure Restore the Economy (HIRE) Act

Requires federal agency relocation for headquarters and permanent duty stations of its employees.

Sponsors:

Senator Josh Hawley, Missouri

Senator Marsha Blackburn, Tennessee

Ten Agencies Subject to the HIRE Act

The HIRE Act identifies ten federal agencies that may be subject to relocation:

The Departments of

  1. Agriculture
  2. Commerce
  3. Education
  4. Energy
  5. Health and Human Services
  6. Housing and Urban Development
  7. Interior
  8. Labor
  9. Transportation
  10. Veterans Affairs

Ten States Stand to Benefit from Federal Agency Relocation

The HIRE Act identifies ten states with significant economic distress over the past decade:

  1. Indiana
  2. Kentucky
  3. Michigan
  4. Missouri
  5. New Mexico
  6. Ohio
  7. Pennsylvania
  8. South Carolina
  9. Tennessee
  10. West Virginia

Of these ten states, eight share borders and are situated in the Midwestern region of the country. South Carolina is located along the Southeastern coast, and New Mexico is located in the Southwest.

Economically Distressed Areas Defined

The HIRE Act defines the criteria that will determine economic distress. These criteria are further segmented into “Priority Criteria” and “Secondary Criteria.”

Priority Criteria include low rates of education, workforce participation, and income. Poverty rates and housing vacancies are also in this criteria.

Secondary Criteria include current infrastructure, ability to expand infrastructure, and the size of the local workforce.

Additional Points for Federal Agency Relocation

Further to the criteria that determines economic distress, the HIRE Act includes a specific limitation:

  • No location may be within 30 miles of a city with over 800,000 residents

The HIRE Act requires the relocation proposal to focus on as small a geographic size as possible. For example, within the state of Indiana, “southern Indiana” would most likely be considered too large a geographic size. However, the town of Lyons in Greene County may qualify.

Federal Agency Relocation Example: Lyons, Indiana

Economically Distressed Area

Lyons has a “Distress Score” of 123.23, the highest such score in Indiana. Lyons is about 87 miles from Indianapolis, IN; 260 miles from Chicago, IL; and 95 miles from Evansville, IN. However, Lyons is only about 50 miles from Terre Haute, IN (60,000 residents). Lyons is also about 50 miles from Bloomington, IN (85,000 residents). As a result, there are two cities of substantial size within less than an hour’s drive for residents of Lyons. Lyons appears to meet the geographic limitation of the HIRE Act.

Workforce and Infrastructure

While Lyons’ population is approximately 700 residents, Greene County has about 32,000 residents. Lyons is also near two major Interstate Highways: I-70 is to the north, and I-69 is to the south. U.S. Highways 150 and 231 are also nearby. The county’s workforce size may suffice for federal agency relocation. Depending on the definition of infrastructure, highways and airports near Lyons may also meet the HIRE Act’s criteria.

Opportunity to Double the Impact of a Federal Agency Relocation

The town of Switz City has a “Distress Score” of 120.97, the second highest such score in the state. Switz City is located only about 4 miles from Lyons. Federal Agency Relocation to Greene County Indiana near or between the towns of Lyons and Switz City initially seems possible. A federal agency setting its headquarters and job location for employees in this area would have a positive economic impact on the two towns in the state of Indiana with the highest Distress Scores. The HIRE Act notes that Health and Human Services would relocate to Indiana. This federal agency relocation could result in the move of thousands of employees to this region.

What Should Employers do?

Employers in the ten states identified as economically distressed by the HIRE Act should expect a rise in demand for workers due to federal agency relocation. Companies should examine their corporate growth initiatives to ensure they can remain competitive as the local labor market changes.

Companies that interact with federal agencies in their current location should review their relocation programs. Employers may need to consider relocation for employees to be near the agency’s new headquarters location.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to labor and economic market forces such as federal agency relocation. Our team can help your company by using industry best practices to design your relocation program.

GMS was the first relocation company to register as a .com, created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s interest in learning more about federal agency relocation due to the HIRE Act and its impact on local areas and labor markets, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Relocation Technology

Relocation Technology Features: What You Should Expect

Companies should expect a number of relocation technology features when they consider working with a Relocation Management Company (RMC). Some of the most useful features may seem similar among such programs, but their execution in the various technologies may vary widely. Companies should request a full demonstration to ensure the technology will provide transferees as well as the organization the best possible experience.

Review of Relocation Technology Features

The preference for specific relocation technology features will depend on the user’s role in the organization. Transferees have different needs than Human Resource Department employees or Accounting Department team members. Robust technology solutions should be easy to use and designed to process each function’s tasks quickly and seamlessly.

Relocation Technology Features for Transferees

  1. Access Relocation Benefit Details
  2. Access Relocation Calculators and Tools
  3. Connect with Relocation Coach
  4. Download Helpful Relocation Guides
  5. Easy to Access Training Videos
  6. Expense Submission and Reimbursement
  7. Interactive Map
  8. Intuitive User Interface (important for all relocation technology features)
  9. Seamless Relocation Experience
  10. Simple to Navigate Menus
  11. Track Payment History
  12. Universal Access on Any Device, Any Time, Anywhere
  13. View and Track Initiated Services
  14. View Initiated Service Progress

DETAIL on #4: “Download Helpful Relocation Guides”

Some RMCs provide a limited amount of information about a specific destination, often published by a local organization. This type of information may not include some of the most helpful resources, such as the cost of living, schools in the local area, or exciting places to visit in the area.

Global Mobility Solutions (GMS) creates detailed Destination Spotlight documents for both Domestic and Global locations that employers can share with transferees. These documents include information about the city or town, cultural highlights, shopping venues, and local restaurants. GMS can also produce these Spotlights in video format. Video Destination Spotlights are professionally created. As a result, they help transferees and their family members visualize what it will be like to live in their new location.

Relocation Technology Features for Organizational Team Members

  1. Cloud-Based Proprietary Technology
  2. Flexible and Customizable Reporting Options
  3. Helpful Resources
  4. Relocation APIs
  5. Secure and Continually Updated Technology Platform
  6. Streamlined Relocation Program Management
  7. Universal Access on Any Device, Any Time, Anywhere

DETAIL on #4: “Relocation APIs”

Some RMCs may provide solutions to share data between their relocation technology features and the client’s data systems. Often these solutions may require transferring files on a regular basis, using FTP, or File Transfer Protocol. FTP is a way to share files from one user who uploads them to a server, so that another user can download these files to their own server. FTP is simple, and works reasonably well provided all aspects of the software and process are correctly initiated, each and every time.

GMS’ team of developers has extensive experience building Application Programming Interfaces (APIs). An API provides a framework for different computer systems to communicate and share information. It lists operations that software developers can use as they design data systems. Also, an API includes descriptions for what they actually do.

A relocation API is specifically designed to facilitate the communication of information that an RMC uses for initiations and other relocation-related functions. Clients can save time and increase the accuracy of transferee initiations in their relocation program by using a relocation API.

What Should Companies do when Comparing Relocation Technology Features?

Companies should work with a qualified Relocation Management Company (RMC) that can provide access to a robust relocation technology. This will help ensure they have access to relocation technology features that support successful transferee relocations, and that help the company effectively manage their relocation program. MyRelocation™ from Global Mobility Solutions is a single-platform, online relocation management suite that provides clients and their transferees an array of decision-making, tracking, and expense management tools.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to identify the relocation technology features most helpful for their transferees and organization. Our team can help your company design a relocation policy that uses industry-leading relocation technology solutions to provide the best experience for transferees and employees.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss how your company can learn more about relocation technology features and industry-leading solutions, or give us a call at 800.617.1904 or 480.922.0700 today.

Request a relocation technology demo

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